Pricing and marketing go hand in hand. No matter what you’re trying to market, your price matters more than you think. For digital products, your price can help drive demand and attract the right customers. It’s not enough to just use whatever price you feel is fair when it comes to your digital products.
You’ve created something with value, and this value needs to be reflected in the price. Go too low with your price and users will assume it’s poorly made. Price your product too high and you’ll scare away the right users.
Luckily, you have some flexibility when it comes to digital product pricing that you don’t have with other products. Namely, it’s easy to adjust the price. This means you have experiment until you find something that really works.
Now that you have a digital product, it’s time to price it accordingly. This guide will explore 6 different strategies for pricing your product that will actually land you the right customers.
While not all of these will work for every business, there is a strategy out there for you. Don’t be afraid to experiment until you discover which one works best.
1. Tiered Pricing :
Tiered pricing is something that’s unique to the digital space, particularly digital products. If you’re selling software, for example, customers are already familiar with tiered pricing models. The tiers usually relate to the level of service, access to features, and the extent of the project.
If we take the software example, we can assume the top tier will come with extensive support and extra features while the lowest tier will be a no-frills version of the platform with limited support.
You can apply tiered pricing even if you’re working with different types of digital products. Consider add-ons you’re able to use to upsell your web design, graphics, or whatever it is you’re trying to sell. Are there extras you can include to sweeten the deal? This might be an indication that tiered pricing will work well for your audience.
2. Price Competitively :
It’s always a good idea to know your market before you try to price your product. Assess your competition. How are they pricing similar things? It’s never a bad idea to base your own price around this number. There are advantages to pricing lower, and also advantages of pricing higher.
If you’re just getting started and your product is comparable to the competition, price a little bit lower to beat out those on-the-fence customers.
Similarly, if your product has extras or benefits that aren’t included in the competitor’s product, you might be able to price higher by demonstrating your value. If you do price higher, be sure to include these key differences in your marketing efforts to clearly differentiate yourself from those similar products.
3. Added Bonuses :
Who doesn’t love something free? According to a Journal of Marketing study, people consider free things to be better than a discount. An added bonus with purchase of even something small like a downloadable e-book is considered to add value to the overall product.
This can convince customers to complete a transaction, and it will also bring them back to you again in the future. It doesn’t much of anything but your time to include these bonus freebies, so why not try them yourself?
4. Try Before They Buy :
Trials are a thing of gold. Customers are savvier than ever. They aren’t willing to part with their money unless they’re positive it will suit their needs. You can overcome this obstacle by allowing users to try your digital product before they make a purchase. This can be done through a free trial or even just a mini-download.
For instance, if you’re selling a web design package, maybe offer a free sample theme so they can get a feel for the bare bones of the design. Once they’ve tried something smaller, they’re more likely to trust your business. They know they can count on your quality and service, so they’re more likely to buy.
5. Money-Back Guarantee :
As we covered before, users need to feel confident they’re getting the right value for their money. A money-back guarantee gives them the reassurance they need to make larger purchases since there’s substantially lower risk.
If this is the first time a buyer is making a purchase with you, they likely don’t have that foundation of trust that things will work out. Offering a money-back guarantee removes that final objection.
Keep your money-back guarantee easy to see during the purchase process. Include it in the checkout page for those last-minute objectors, or add it to your invoice. Download web design invoice template if you don’t have one already, and clearly outline your policy on money-back.
6. Test Your Offer :
Finally, you need to play with different aspects of your pricing offer. Once you’ve decided on a method above, you need to test it to be sure it’s properly explained and marketed. With customers today, it’s all about building trust and showing value. When creating different price point, test how your customers react.
How do these pricing models fit into your current marketing strategy? How do they display the best benefits of your digital product?
Your first price might not be your last price. Give yourself the freedom to change your price depending on your feedback. If you opt for the money-back guarantee, for instance, and see a few returns, that might be an indication that you need to go back to the drawing board.
Similarly, you might be able to increase the price by including a free download with purchase. Consider these small things and see how they affect your business.
There is no one-size-fits-all when it comes to pricing your digital product. Luckily, there doesn’t need to be. While you should be aware of the market and the pricing of your competition, don’t let yourself be pressured into lowering or raising your price if it doesn’t make sense for your business.
As long as your customers feel your product offers the right level of value and service, they’ll continue to buy from you. That might mean you’re priced competitively below the market price, or it might mean you offer more benefits and charge more. There is no right number, as long as you find something that works for you.
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